By Jennete Ugo Anya
The National Insurance Commission (NAICOM) has formally issued a new set of operational guidelines to regulate Insurance-Technology (Insurtech) firms in Nigeria, with full compliance required within 30 days of the effective date, which started August 1, 2025.
The move follows extensive consultations with industry stakeholders and is aimed at providing a unified regulatory framework for the licensing, operations, and supervision of technology-driven insurance businesses operating in the country.
Driving Innovation, Consumer Protection, and Digital Growth
According to NAICOM, the guidelines are designed to:
- Foster responsible innovation in the insurance industry
- Enhance consumer protection and experience
- Provide regulatory clarity to reduce ambiguity for market participants
- Build trust and confidence in Insurtech operators
- Support digital transformation in line with Nigeria’s evolving fintech and digital economy landscape
The Commission emphasized that the framework will facilitate the development of new insurance products and services, while ensuring operators prioritize consumer interests and service quality.
Key Objectives of the Guidelines
The guidelines seek to:
- Promote the structured growth of Insurtech in Nigeria
- Establish clear regulatory standards for setup, operation, and product development
- Define product characteristics specific to tech-driven insurance solutions
- Introduce a licensing structure for both partner-based and standalone Insurtech firms
- Facilitate the transition of eligible Insurtech startups into fully licensed insurance entities
- Align with national objectives for financial inclusion and digital innovation.
Application Categories and Licensing Scope
The Commission outlined two major categories for Insurtech licensing:
- Partnering Insurtech Firms
May offer specified classes of insurance in collaboration with existing licensed insurers.
- Standalone Insurtech Entities
May offer any category of insurance specified in their license, excluding high-risk or sensitive classes such as:
- Oil & Gas Insurance
- Marine and Aviation
- Retirement Life Annuities
- Insurance for government assets and MDAs
Prospective applicants must follow the procedures detailed in Schedule I of the guidelines. NAICOM reserves the discretion to grant conditional approvals in accordance with prevailing laws and this regulatory framework.
Under the new regime, licensed Insurtech operators must comply with standards governing:
- Risk management
- Investment practices
- Actuarial compliance
- Outsourcing arrangements
- Other core operational areas as set out in NAICOM’s Prudential Guidelines
Dispute resolution mechanisms are also established.
- Disagreements between Insurtech firms and their insurance partners must first go through contractual arbitration procedures.
- Consumers, however, may escalate unresolved complaints directly to NAICOM for redress.
30-Day Compliance Window for Existing Operators
NAICOM has mandated that all existing firms currently engaged in technology-based insurance services under any structure must fully align with the new guidelines within 30 days from August 1, 2025.
The Commission reiterated its commitment to regulatory innovation, noting that the framework is a key step in deepening digital insurance penetration while safeguarding market integrity and consumer rights.
